ECN 211 : Final Exam Review 2024 with 100% correct answers

Real GDP is commonly used for what? - correct answer Short run changes. When real GDP falls, so does what? - correct answer - Personal income - Corporate profits - Consumer spending - Investment spending - Industrial production When the overall economy declines that is due to what? - correct answer - Reduction in spending in factories - Housing - Inventory When real GDP declines, what happens to the unemployment rate? - correct answer It increases. What is the natural rate of unemployment? - correct answer 5% or 6%. In the short run, what can money supply do? - correct answer It can temporarily push real GDP away from the long run. Model of aggregate demand/supply - correct answer Explains the short-run fluctuations around its long-run trend. Aggregate demand - correct answer The curve that shows the quantity of goods and services households, firms, government, and customers from abroad want to buy at each price level. Aggregate supply - correct answer The curve that shows the quantity of goods and services firms choose to produce or sell at each price level. When there's a lower interest rate, what affect does that have on the quantity demanded? - correct answer It increases. When the price level decreases, what affect does that have on the interest rate, spending, and quantity? - correct an